GQG bleeds over US$7bn in FUM in June

Despite recording positive investment performance, GQG Partners observed a significant outflow, with net outflows of $4.62 billion (US$3.2bn) recorded in the month of June, as funds under management (FUM) slipped to $225 billion (US$156bn) at June end, compared to $235.5 billion (US$163.3bn) in the month prior.

This also brings the total of outflows for the half year ended June 30 to $21.7 billion (US$15.1bn), GQG data showed.

GQG said although the outflows were offset by positive investment performance of $10.4 billion (US$7.2bn), its investment strategies underperformed their respective benchmark over the first half of 2026.

"For the three-year period ending 30 June 2026, our strategies generated double-digit net returns, consistent with our investment objectives," GQG's update noted.

"Our focus remains on compounding client capital over a full market cycle with disciplined attention to downside risk.

"As in prior periods, fees on the vast majority of GQG's FUM are calculated as a percentage of assets under management rather than performance fees linked to investment performance."

Meanwhile, Macquarie noted GQG's performance has once again "deteriorated", with all funds underperforming on a five-year basis.

Macquarie said while global markets performed strongly in the June quarter, all GQG strategies underperformed according to its tracker.

"We have recut our GQG flow tracker as at 30 June 2026 and estimate net outflows at -29% (annualised) for the month of June, a deterioration vs the -15% over the prior six months," Macquarie said.

"Our analysis suggests net flows are ~80% correlated with five-year relative fund performance (aggregated) with a one quarter flow lag. With five-year relative fund performance below benchmark for all four funds, we remain cautious around net flows in the near term and reiterate our neutral rating.

"Given our monthly fund tracker illustrates weakening flows, as well as five-year relative fund performance deteriorating, we increase our net outflow assumptions over FY26-27E. We temper our FY26E FUM by -9.6%, with FY27E EPS lowered by -16.2%."